New Hope Corporation (NHC)

Credit Suisse has downgraded its rating on coalminer New Hope Corporation from “outperform" to “neutral", believing there is better value elsewhere in the sector.

Though the broker likes the company’s “long-term story", the stock’s recent outperformance has left it more expensive than its peers Gloucester Coal, Macarthur Coal, Bathurst Resources and Aston Resources, which are the preferred picks in the sector.

Lower production from the company’s Acland coalmine has led to a reduction in valuation from $6.25 to $5.86. The 12-month target price on the stock has also been reduced to $5.86 from $6.

The company has been battling to recover from outages on its rail line between Brisbane port and the Acland coalmine, which was closed due to flood damage between January and March.